Abu Dhabi National company (ADNOC) announced the award of a $946 million (AED3.47 billion) Engineering, Procurement, and Construction (EPC) contract for the strategic long-term development of its Umm Shaif field. The investment supports ADNOC’s production capacity plans of 5 million barrels per day (mmbpd) by 2030 while ensuring energy security for the United Arab Emirates (UAE) and partners round the world. The ‘Long-Term Development Plan – Phase 1’ (LTDP-1) EPC contract was awarded by ADNOC Offshore to National Petroleum Construction Company (NPCC) after a competitive tender process. The scope of the award covers engineering, procurement, fabrication, installation and commissioning activities required to take care of Umm Shaif’s 275,000 barrels per day (mbd) rock oil production capacity, increase efficiencies and enhance the field’s long-term potential. Significantly, over 75% of the whole award value will flow into the UAE economy under ADNOC’s In-Country Value (ICV) program, ensuring that more quantity remains within the country from the contracts it awards. This reinforces ADNOC’s commitment to the UAE’s ‘Principles of the 50’, the economic blueprint for sustainable growth announced by the UAE’s leadership in 2021.
ADNOC Upstream contracts administrator, said: “This important award for the long-term development of ADNOC’s pioneer offshore Umm Shaif field will maximize efficiencies while maintaining future output and supporting ADNOC’s strategic objective of 5 million barrels of production capacity each day by 2030. additionally, the event plan for Umm Shaif underpins ADNOC’s commitment to take care of its position as a number one low-cost oil producer and strengthens our role as a reliable energy provider to customers round the world.
“We are pleased to be collaborating again with NPCC as a contractor bringing leading expertise and advanced technologies together with a proven industry memoir. Importantly, the very high In-Country Value generated from this contract award will stimulate new business opportunities for the private sector and, in line with the directives of the UAE’s wise Leadership, support the UAE’s economic process as we glance to our next 50 years.” The EPC contract, which is to be complete by 2025, comprises two packages for network expansion and new well-head towers. the primary package includes modifications and extension of existing facilities with installation of recent subsea cables and pipelines for debottlenecking. The second package includes the planning of three lean well-head towers with associated new pipelines. The contract incorporates ‘fit for the future’ technology including rig-less electrical submersible pumps (ESP) and other digital field technologies, which is able to increase efficiencies while maintaining current production capacity. Umm Shaif is ADNOC’s most historic offshore asset - 2022 marks the 60th anniversary of the UAE’s first oil export of Umm Shaif fossil oil in July 1962. Continuing investment and development at Umm Shaif ensures responsible maximization of profitability, enabling greater value for the UAE, ADNOC and its partners. Source: ADNOC